Johannesburg - Fountainhead Property Trust [JSE:FPT]
has concluded an agreement for the acquisition of Centurion Boulevard from Sanlam Life Insurance.
The total purchase price was R366m at an 8.2% initial yield.
"The property is located in the heart of the Centurion CBD, easily accessible from the N1 and N14 highways. It is attached to Centurion Mall, and is marketed as forming part of the Centurion Mall super-regional shopping centre," the company said on Tuesday.
Fountainhead said the acquisition was in line with its strategy of acquiring quality retail assets located in strong retail nodes and possessing good future growth prospects.
"Management believes that there are further opportunities available to enhance the value of the property, such as optimising the tenant mix and also benefitting from synergies created by using the existing Centurion Mall property management team to manage the property."
The company added that the purchase price would be debt financed and was initially expected to be neutral to earnings. The effective date of the acquisition was set as 1 March 2012.